Destination Clubs Lower Costs By Pursuing Fellow Destination Club Members
By: Destination Club News
Date: January 18, 2009
Stealing a page from the long accepted business axiom that repeat purchasers are far less costly to acquire than finding new ones, many destination clubs are offering significant discounts to other destination club members who have already bought into the destination club concept.
Earlier this month, High Country Club released a statement announcing their intention to offer current destination club members, either active or on a club's redemption list, the opportunity to enjoy High Country Club through a no membership fee membership.
High Country Club is pleased to announce a Special Offer for existing Destination Club Members. Existing Members of any Destination Club can now experience High Country Club for 1 year by simply paying annual dues (no membership fee). Annual dues are paid monthly. In the event you would like to become a member after the 1 year period, you would be required to make a nominal membership fee payment. If not, you have no further commitment to the Club. I believe our offer is an excellent opportunity for many destination club members that are in a state of transition within their own club. Members of clubs that are on resignation lists, not paying dues and not traveling can travel now with High Country Club.
The Special Offer is only available to existing Destination Club Members.
- Dues are paid monthly
- Offer expires March 1st, 2009
- Requires a 1 year commitment
- Family and Friends option is not available for these offers
- Offer is available to current DC members, active or awaiting redemption, and is subject to application and verification of DC membership status
- Membership fees are non-refundable in the event a prospect desires to become a permanent HCC member.
- The initiation fee will be credited towards the membership fee for those who become HCC members.
Associate
15 nights of use
Initiation Fee (non-refundable) = $1,000
Annual Dues = $6,400
Membership Fee (after 1st year) = $10,000
Affiliate
25 nights of use
Initiation Fee (non-refundable) = $1,500
Annual Dues = $8,600
Membership Fee (after 1st year) = $15,000
Private
35 nights of use
Initiation Fee (non-refundable) = $2,000
Annual Dues = $10,800
Membership Fee (after 1st year) = $20,000
By providing a membership option to destination club members built primarily on annual dues, High Country Club not only allows other destination club members to enjoy the High Country Club experience first hand and subsequently increases their chances of upgrading to permanent members following the year of membership, but also provides the club with operating capital needed to continue as the club restructures.
The High Country Club offer ironically came on the heels of many other destination clubs making a play at High Country Club members as the club faced growing economic pressure and slumping consumer confidence, leading President and CEO Christian Kirschner to state "new sales have become next to impossible."
Following the news of High Country Club's restructuring, both Ultimate Escapes and Distinctive Holiday Homes made a play at the High Country Club membership base.
High Country Club's longtime competitor at the entry level price point, Ultimate Escapes extended an offer to High Country Club members that would save them upwards of $40,000 on their Ultimate Escapes membership. A new seven-day Premiere Club Affiliate Membership was also created for High Country Club members.
Running concurrently with the Ultimate Escapes offer was an offer from Distinctive Holiday Homes. Not only did Distinctive Holiday Homes greatly discount their 14 night plan from $99,000 to $60,000 for High Country Club members, but members could pay their membership deposit over five years, interest free.
In an interview with The Veras Group, Distinctive Holiday Homes' CEO Nick Wood stated "The beauty of our plan is that the membership deposits we will start collecting from former High Country Club members will allow for another 10-20 homes over time, which gives the correct number of properties, and everyone should be a happy little camper. And unfortunately, they will just have to face the fact that they lost money somewhere else. I think it's a fair offer, a reasonable one, and we won't put their money at risk for a second time. And if they don't like it at the end of the year, they would have only paid $600 per night of travel, or if it all went to hell in a hand basket at the end of the year, which it won't."
Not specific to High Country Club members, Abercrombie & Kent Residence Club released an offer to fellow destination club members that would allow members of any destination club to join Abercrombie & Kent Residence Club but be able to delay paying up to 80% of the membership deposit for six months, interest free.
Although just months old, Abercrombie & Kent Residence Club has already established themselves as the leading equity club in the destination club industry. Owned debt-free, properties are owned by the club and the club is owned by the members.
Marketing costs are often one of the largest capital costs associated with destination club memberships. By reducing those costs by working with individuals well versed in the destination club industry, those savings can be passed along to members.
In addition to saving on their membership deposits, purchasing an auxiliary destination club membership also provides additional nights of annual travel and more destinations to choose from.
As the industry continues to consolidate, expect other clubs to continue these marketing ventures as well as introduce additional base model programs that allow prospects the opportunity to enjoy the destination club experience for a smaller initial contribution.
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